In late Fall 2021, Governor Kathy Hochul passed a Senate bill detailing the new lifted restrictions on dog breeds from insurers writing Homeowners’ policies. The law went into effect late January 2022. Insurance companies now, are not allowed to deny individuals coverage for their home based on the kind of dog they own. Not only are insurers prohibited from denying this kind of risk, they also cannot raise the policy’s premium substantially or refuse to renew an existing policy solely based on what dog a family or individual may have. However, this does not mean complete free reign between the tri-relationship of insurer, insured, and dog.
Insurance companies can still, under the liability portion of a Homeowners policy, increase the rate for dog liability coverage as well as exclude dog incidents as a cause of loss, which would qualify for coverage under an approved claim. Additionally, insurers can enact a sublimit on your policy for such dog incidents, which means they will only cover so much in the event of a loss. For example, Midstate Mutual Insurance Company recently responded to this law when passed and adjusted their Homeowners policy’s underwriting guidelines, imposing a $100,000 maximum liability limit with $1,000 maximum medical payments.
By now you’ve most likely thought of the most popular dog breed that is stereotypically dangerous or classified as aggressive – Pit Bulls. Midstate Mutual enforces those maximum limits on tenants and/or household members with a Pit Bull or Pit Bull Mix. Other breeds commonly perceived as vicious, or mean are German Shepherds, Rottweilers, and Doberman Pinschers. These breeds unfortunately tend to be frequently listed under dog bite statistics. The Insurance Information Institute calculated $854 million in 2020 as how much insurers paid out under homeowners’ policies in relation to dog-injury claims.
Insurers are fully within their right to look at claim history and a dog’s bite history or behavior tendencies to adequately write policies while adhering to their particular standards and the Insurance Service Organization’s (ISO) laws and regulations. However, this new flexibility of dog breed restriction comes from a new light in recent years that a dog’s breed does not completely determine their attitude. For example, pit bulls are constantly in the news as dogs who save a person from danger or protect a child in need. There are stories that highlight pit bulls who served in World Wars to protect wounded solders until help arrived, to German Shepards who sensed a stroke, and a Doberman Pinscher who protected his owner’s 17-month old daughter from an Atherton snake. Just like people, not all dogs have a dangerous temperament just because of their roots.
There are ample examples of incredibly wonderful instances of positive behavior that these particularly classified “aggressive” dogs have done. The current times have undeniably become more accepting and forgiving – equity, diversity and inclusion are values constantly increasing in importance and appraisal, and they are encouraged and promoted every single day. Although this applies to a vast majority of different topics in our world, insurance companies, and New York State as a whole, have come to realize that discrimination will not be widely, nor quietly, accepted as it used to be.
This discrimination practice absolutely relates to the discriminatory rules regarding dogs put forth by insurers. Of course, insurance still relies heavily on the unique requirements that must be met. Certain rules will have to be put into place regarding this new guideline to promote and maintain solvency, like imposing the maximum liability limit or even excluding dogs as a covered cause of loss.
Hooray for equity in the animal world! It’s a positive direction for the pets we call “family” in our households.
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